Fiscal Policy stories

Aug 11, 2026

Federal deficit projected to reach $2.1 trillion, $200 billion higher than CBO's February estimate

The Congressional Budget Office revised its fiscal year 2026 deficit projection upward by $200 billion to $2.1 trillion in its monthly budget review released Monday, significantly higher than its February forecast.

Aug 11, 20261 source

Top claims

▪The Congressional Budget Office projected on August 10, 2026, that the fiscal year 2026 federal deficit will reach $2.1 trillion, which is $200 billion higher than its February 2026 projection of $1.9 trillion.
▪The tariff revenue shortfall in fiscal year 2026 was driven by the U.S. Supreme Court's February 2026 decision striking down levies imposed by President Donald Trump under the International Emergency Economic Powers Act.
▪Federal receipts from corporate income taxes decreased by $89 billion because the One Big Beautiful Bill Act allowed corporations to take larger deductions for certain investments.

Subtopics

Economic forecasting (AI)Government spending

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